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FMF Company profile and background Firstly, FMF limited has established over 40 years and was founded by Mr Hari Punja. It is The first that produced such activity in Fiji since 1973. The company name was “Suva flour mills co Ltd” and later change to flour mills of Fiji (FMF). FMF is a parent to six other companies and is currently listed in the SPSE. It was also one of the first to list way back in the 1970s. While flour is still the main activity of the firm FMF is currently involve in variety of products including food packaging and snacks ranging from breakfast crackers to all natural fine care cream biscuits. Furthermore, FMF currently have about 435 shareholders range from individuals’, pensions and banks. Today their market reach covers all pacific countries including Australia and New Zealand as well as United States and Canada. Back in 2013 FMF received the large exporter of the year Award.

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Key financial and market performance highlights SPSE: FMF continues to show why it is one of the best manufacturing companies in the region through continues revenue improvement over the years. 2019 is a standout year for the company with strong revenue and profitability growth. What are the factors that make them archive high revenue and profitability?

FMF: the revenue of the company witnessed an increase in revenue of 5.3 million. From the report from the previous year the profit before tax decreased by 2 million that is from 10.5 million to 8.5 million. Even though there is a massive increased in revenue over these two years as well as product varieties and range are increased there is still a significant impact on profit by the sharp increase in wheat price globally and our incapacity to pass on these situation because of price control products and its delay in getting the price revision. Dividend payout by FMF was also increased by 15.4% that is by $3 million from 2018 of 2.6 million.

Particular Total revenue ($m) Net profit after tax ($m) Earnings per share Return on equity (%) Net profit margin (%)

jun-2017 jun-18 202.5 184.9 16.89 8.49 10.45 4.97 13.12 6.3

8.34

4.59

jun-19 190.2 6.83 3.53 5.0

3.59

Outlook 2018 and 2019 financial year was a very challenging and a tough market year for FMF, however the future looks inviting. The revenue has been increasing from 2018 to 2019 from 184.9 to 190.2 million. Wheat production is forecasted to be normal during the year 2019- 2020 while Australian supplies are expected to be 17.1 million tons which is below their normal of 25 million tons. Furthermore since the source of wheat comes from Australia, price of wheat is expected to be steady. Due to the uprising trade tensions between US and China, it remains one of the key Risks to economic growth. Additionally, due to the exit of United Kingdom from EU (Brexit) is also a contributing factor affecting FMF and its trade. From the economic outlook published by the IMF projected that the world economy is expected to decline by 3.2 % in 2019 and to grow 3.5% in 2020. Furthermore, Veisari biscuit factory has been functioning well and has also expanded its market and product range. It is certified by SQF LEVEL 3 as one of the highest food safety standards and formulated some products specifically for Melanesian markets like Solomon Island, Vanuatu and PNG, while also launched the wholesale FMF breakfast cracker in the Fiji markets. Its manufacturing product has also been taken over few other products that are produced in Walu Bay factory. Finally, in association with robust investment plan, the group involved in building capacities that includes warehouse and central stores and most recently their major and modernisation upgrade of flour mill.

Challenges SPSE: what are some of the challenges that FMF facing during past years until now and what are some of the measures put in place by management to tackle such challenges? FMF: One of the challenges that the group faced and currently facing is the exposure to market risk including currency risk. Since most of their imports are from Australia and New Zealand they are exposed to currency risk which arises from future commercial transactions and liabilities that are exposed in foreign currency. In response management has set a policy that requires the company to manage the foreign exchange risk against the Fiji dollar. In addition, for settlement purposes, they seek quotation from recognized banks and use the most favourable exchange rate. Another major challenges faced was where to find the best place and right people to purchase quality raw materials, services and other needs of the company in order to compete in the global market and this is very challenging for FMF. They try as much to work together with Australia and New Zealand to address this issue or challenge. They actually have subsidiaries in New Zealand.

Krishika Narayan The annual award event for the entire capital market is back again this year. The 2019 will once again feature two main categories which is the annual report award and the grand awards. The main objective under the grand awards is, recognized and rewards our key stakeholders such as our listed companies, advisors and stock brokers. Whereas the aim of the annual report awards is to asses and evaluate the annual report for both listed and unlisted company by focusing on how they present their reports, its content, disclosure of the report and how relevant information is displayed and easily understandable for the shake of stake holders.

SUMMERY OF SIGNIFICANT ACCOUNTING POILICIES Principles of consolidation 

Subsidiaries: these are all entities that FMF has authority over. And this includes APP. Biscuit Company of Fiji limited, FMF Snax limited, Pea industry limited, Rice Company of Fiji and DHF. Subsidiaries were fully consolidated on the date when control is fully transferred to the FMF. And they will continue until the day when control from FMF group ceases. The accusation method was used to in terms of combination of business. When doing the transfer they take into consideration the fair value of assets as well as liability that occur from contingent arrangement. Accounting policies of subsidiaries are flexible and can be change where necessary to ensure consistency with the adopted policies.

Financial Assets: accounting policy applied from first July 2018 Asset classification  Financial assets of FMF are classified under the following categories of measurement; assets that measured under fair value (either through OCl or profit and loss) and those that are measured by amortised cost. These classifications depend on the business model that the firm use for managing contractual terms of cash flow and financial reports. This model determines the outcome of cash flows either through collecting contractual cash flows or selling of financial assets, it can both as well. These financial assets are measured at cost of cash, trade receivables, other receivables and other investment.

ATH Amalgamated telecom holding limited started its operation on the 16 of December 1998 just after it was listed as public company on March of the same year.as part of the public sector reform, its main objective was to integrate and manage the investment of the government in the telecommunication sector as part of the public sector reform programme. After the bidding process that was conducted by the national investment bank, the government sold 49% of its strategic stake to FNPF. FNFP later acquired another additional 2 %. currently the government owns only 34.6% of the issued shares of ATH while has increase its ownership to 58.2%.The principle activities of the ATH group is; internet

and data related service, telecommunication services as well as products (fixed line and mobile), directory and prepaid services etc. furthermore, i maintaining its corporate governance, in 2010 they revised its code of corporate governance principle.

Financial highlights and operational highlights SPSE: the objective of the firm for this year was to pursue a balance strategy of organic growth and growth through acquisition. ATH continue to show improvement in its financial statistics and performance as well as creating customer growth and shareholders value? What is the main driven factor that triggered this achievement? ATH: In alignment with the objectives we have restructured many existing business in Fiji, we currently working in new operation in Samoa and Cook Islands anticipating settlement, while improving operations in Kiribati and Vanuatu. The increase of our subsidiary business such as Vodafone Fiji Pte limited, telecom Fiji limited as well as other operations in few pacific islands saw us continue in making revenue. Our gross profit, earnings before tax depreciation, revenues and amortisation continues to grow from consolidation of new business as well as organic growth. Compare to 2018 our group consolidate revenues has grown by 14%, while EBITDA was increased by 8% in 2019. However due to restructuring and acquisition costs was slightly drop to 112.7 from 113.5 in 2018. In addition, net financing cost was also increased from 5.7 million to 8.8 million which is associated with closing of the acquisition funding during the financial year.

Future outlook SPSE: We “ATH” limited has continue establishing and expand our operations in six other pacific countries including Kiribati and Vanuatu as well as operation of subsidiaries companies has positively impacted our financial terms and outcomes. ATH: we looking at making a progress in the future. Apart from our achievements we were still hungry for what the future holds for our group. When it comes to capital allocation, subsidiaries of ATH were looking into investing $90 million of capital into various subsidiaries this year. Our investment portfolio at the ATH level is expect to generate free cash flow in the 32.2 million range in 2020 financial year. We also are expecting a discretionary cash flow of about $21.7 million after paying dividends of more than $10.55 million, which is designated to paying our debts from blue-sky and deglitch acquisition. By quickly repaying our debts there should be a comfortable net- debt to adjusted EBITDA ratio in the 2.5x range by end of 2020, and will continue to de-lever after that.

Challenges SPSE: What are some of the challenges that ATH faced and is currently facing and how does the management of ATH respond and tackle such challenges? ATH: Firstly, since our business is a parent company to many other companies as well as we have different mini companies that are operating in various pacific islands, ATH finds it very challenging in terms of geographical locations. This challenges associates with the High cost and recent competitive entry by second licence. Approximately 22% of the groups’ revenue will be derived from outside operations and it is very challenging to with the geographical locations. For example shipment cost,

tariffs as well as other cost that involved in taking inventory into a position ready for used. As we faced these challenges we tried our best to balance our quality of our products as well as growth of the company across the region. Furthermore, another challenge that we faced was identifying and prioritising task with the most growth potential. As we know understand that in Fiji and also those countries that we have branches operating in them are already have other companies that provide the same services and products that we are providing. Therefore, prioritising task and potential growth of the company is very challenging as market competition in those geographical areas is high. In response to the challenges our company implement market strategies that attract customers. For example FIBER TO THE HOME ROLLOUT strategy that was implemented by Fiji telecommunication limited which is one of our subsidiaries company to bring communication from develop countries to Fiji. Another strategies set in place is advertisement and discount on goods especially in our branches in the region.

Company structure Vodafone Fiji Pte Limited Vodafone Fiji was able to grow its consolidated revenue by 6% to $336 million and increased its customer base from 760,000 to 819,000. Towards the end of the previous financial year, the company embarked on a huge network upgrade programme, investing $206 million to increase 4G+ coverage to over 90% of Fiji’s population. Such standout performances reflect the commitment invested in improving the customer experience.

PACIFIC GREEN INDUSTRY PROFILE AND BACKGROUND

Pacific green industry limited is a private company that is listed in the south pacific stock exchange. This company is part of the manufacturing industry and is located at CUVU, Fiji. The main activity of this company is manufacture and sale of furniture as well as architectural products that are made from coconut palm wood. PGI Company was established and founded in 1973 as “post and rail furniture” before later change to pacific green that before expanding its operation internationally in the late 80s. Currently PGI is operating over 40 years. It was actually form by a young team that was led by Bruce Dowse and peter Ryan. The main inspiration behind forming this company was the idea of designing an iconic style of Australian furniture. Their awards designs were recognised by retailers across the region especially Australia and New Zealand. Later between the years 2000 to 2010 tactile materials were included in the design to complement palm wood. In 2010 we were invited to participate in world fair event in Shanghai.

Financial highlights Throughout the 2019 financial year we “PGI” as a result of our decline in sales we had to reduce the number of working days. In 2019 we achieved total revenue of $3,883,938 million compared to $4,200,214 in 2018, which our revenue has been decreased by a total of $316,276 and management has taken into consideration the factors that affect our revenue. In 2018 we recorded a Profit of $686,520 compared $445,753 in 2019. Due to the downturn of the economy these reductions in sales and profit has been predicted by the management of PGI. With the ability of our management to think critically and quickly, we were able to reduce costs successfully and realise a profit as well as implementation of appropriate control and measures. Our operation has further been affected by the fire at sigatoka, Fiji factory complex on the 10th of February 2019. In 2017 our return on equity was 9.67 and increase to15.63 in 2018 which displayed that there is effective management in using the company’s asset but it slightly falls again in 2019 and the management really did consider the causes of the decline.

Future outlook The management of pacific green continues to invest in the future by focusing on the strategy of the business. Our main objective is still remain the same which to increase market share as well as strengthening existing relationships and building new ones. There were no new standards, amendments and interpretations issued that is expected to impact on our future periods. Furthermore, as most shareholders would be already aware that there is new exciting products that we are working on it right now to add values to our customers as well as providing quality services. With the increased of exports to our Australian companies Mr Ram stated that “all was going well” and we have solid plans for the future expansions through exporting and making new products to expansions of company site. Nonetheless, our past achievements were based on our unique products and designs and innovative marketing and these functions have been further strengthens which is a positive outlook for the future. Our recent partnership with HFC bank has also plays an important function in our future outlook. This partnership and understanding, allows the clients of pacific green industry to afford and access the award winning and world class furniture in their homes. CEO of HFC bank stated, “This is something that we can give it back to our customers”.

Challenges What are some of the challenges that pacific green industry faced in its business operation, how are those challenges affect the daily running of the operation and how did the company respond to those challenges? Firstly, the business operation was affected by the outbreak of the corona virus at the end of 2019. And it is predicted that in 2020 the world economy will be fall to level below the global financial crisis. Between the year 2019 and 2020 it was very challenging with the beginning of the trade war between United States and China that is affecting international business. These factors has had and also expected to have a negative impact on the Fiji economy as well as affecting our sales and profit. We are aware of the impact of covid-19 both locally and globally. In respond to the challenges, we are working closely with relevant authorities to minimize the risk of operations and to ensure that

business operation is continue to run smoothly. Furthermore, in order for us to stay competitive regardless of the challenges we continue with our research and development strategy and will continue our operational efficiency through training of skill based workers and process improvement.

SUB EVENTS LIQUIDITY RISK This is the risk that the company encounter difficulties in the financial obligations that is fall due and this risk associated with the financial liabilities that are settle by delivering cash or other financial assets. We try as much as possible to PGI always have sufficient liquidity to meet its liabilities when due under which ever conditions (normal or stressed) without incurring unnecessary losses or damage the reputation of the company. CAPITAL RISK MANAGEMENT The aim of the company when it comes to capital management is to safeguard the company’s ability to full fill their operation as a going concern and to provides shareholders return. In order to maintain the capital structure, the company may adjust the amount of dividends that are paid to shareholders or involve in selling of assets to reduce debts.

COMMUNICATION FIJI Communication Fiji limited is the largest radio broadcasting company that is operating in the south pacific region. This company established way back in 1983 behind the inspiration to follow up on campaigns made by the alliance government in the 1982 election. CFL is listed on the 20 th of December 2001 as a public company on the south pacific stock exchange and this development was seen as critical as CFL were preparing for further growth in the future. The principle business activity of CFL GROUP both the holding company and the subsidiary in PNG is the operations of commercial radio stations. The associates companies also rent out properties and provide cinema. It has 5 major radio operations in Fiji and under its subsidiary company is PNG FM has another three operations. Profits centres have been develop by CFL that compliment as well as exploit the power of our radio networks. These centres include; total Event Company, Fiji village, cinema ads and TV commercials.

GENDER DIVERSITY SPSE: Are there any policies that set in place to promote gender diversity at the board level and do the company achieve those goals?

CFL: the company knows about that impact of gender balance in the any firm. Therefore, recently the board of CFL implement a policy on gender diversity to maintain a 50-50 balance of both male and female to also ensure that the board comprises of both gender considering the relevancy of different skills, experience and views among both male and fe...